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How Crisis Impacts Our Finances

How Crisis Impacts Our Finances

February 25, 2022

Living in a world that is more connected than ever, the deteriorating situation in Eastern Europe right now impacts everyone. Markets are all global so tensions elsewhere will also bring tensions to our doorstep and impact our finances.

But how we respond to these events will determine the level of that impact.

Having a strategy to deal with uncertainty can help us not just respond off the cuff or emotionally.

Be Steady

Having experienced a pandemic in the past couple of years, we have seen that the sage advice of being patient and disciplined investors was proven once again to be true. The market was impacted briefly and then rose once again. Those who are steady rather than reactionary are rewarded for maintaining their perspective and blocking out the noise of the world.

Be Ready

Preparation is key to how we handle uncertain times. You formed your plan likely in more certain times. Those plans were not laid in a vacuum. They were hopefully formed with the future in mind, built on sound financial principles. Don't doubt well-laid plans. Continue to carry them out. Being ready is about understanding that blips will occur in financial markets. But our response to corrections determines how affected we will be.

Cue the Confetti!

Our outlook can have a huge impact on our finances. Don't let emotions decide your finances. Be pragmatic and stay with the plan. Looking through the lens of worry can lead to impulsive, poor decisions. Look to history to see how the market fared in similar circumstances. Make wise decisions with your current spending.

Be encouraged. We have made it through troubled times before. Keep your faith in God, not the ever-changing stock market.

 

Keep in mind that investors must consider their risk tolerance and investment objectives to stay invested during down markets. Past performance does not guarantee future results and investing during any market cycle poses risks including the loss of principal.